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NEW QUESTION: 1
A. Option B
B. Option C
C. Option A
D. Option D
Answer: A
NEW QUESTION: 2
A firm's accountant has mistakenly overstated depreciation by 50 and understated accounts receivables by
35. The firm's tax rate is 40%. Then, which of the following is/are true?
I. Income is understated by 30.
II. Income is understated by 50.
III. Operating cash flow is overstated by 55.
IV. Operating cash flow is overstated by 85.
A. II, III & IV
B. II & IV
C. I, II & III
D. I & III
Answer: D
Explanation:
Explanation/Reference:
Explanation:
If depreciation is overstated by 50, the income is actually understated by 50*(1-tax rate) = 30. The understatement of accounts receivables does not affect the income statement; it understates the reported current assets. It also affects the operating cash flow. Note that operating cash flow = net income + noncash expenses - non-cash revenues - cash reductions in operating accounts Since income is understated by 30, non-cash expense (depreciation) is overstated by 50 and noncash revenue (accounts receivable) is understated by 35, operating cash flow is overstated by -30 + 50 - (-35) = 55.
NEW QUESTION: 3
A network administrator is building two IRF domains:
One domain for the two distribution layer switches, which are 7500s
One domain for the access layer switches, which are 5500 Els
The distribution switches have a link between them. Each access layer switch should have a connection to each distribution layer switch. LACP is to be deployed to simplify the network topology. In this design, how many access switches can the administrator have in the access layer IRF domain before Spanning Tree is required to remove loops between the two IRF domains?
A. 0
B. 1
C. 2
D. 3
Answer: D
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